09 04-12 sonyfh results-q1-1

Presentation Material

Consolidated Financial ResultsConsolidated Financial Results for the Three Months Ended June 30, 2012

andand Sony Life’s

M k t C i t t E b dd d V lMarket Consistent Embedded Value as of June 30, 2012

Sony Financial Holdings Inc.August 13, 2012August 13, 2012

Content

■Consolidated Operating Results for the Three Months Ended June 30, 2012 P.3

■Consolidated Financial Forecast for the Year Ending March 31, 2013

■Sony Life’s MCEV and Risk Amount Based on Economic Valueas of June 30 2012

P.26

P.28as of June 30, 2012

■ Appendix P.30

Disclaimers:This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the SonyFinancial Holdings Group (the “SFH Group”). Any statements contained herein that pertain to future operating performance and that are not historic facts are forward looking statements Forward looking statements may include but are not limitedand that are not historic facts are forward-looking statements. Forward-looking statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” and “possibility” that describe future operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, are based on judgments made by the management of the SFH Group, based on information that is currently available to it. As such, these forward-looking statements are subject to various risks and uncertainties, and actual business results may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue reliance on forward-looking statements. The SFH Group disclaims any obligation to revise forward-looking statements in light of new information, future events or other findings. The information contained in this presentation does notconstitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment , y p ywhatsoever.

2

Consolidated Operating Results for the Three Months Ended June 30, 2012the Three Months Ended June 30, 2012

3

Highlights of Consolidated Operating Performance for the Three Months Ended June 30, 2012 (1)

FY11.1Q FY12.1Q Change

Lifei

Ordinary revenues 229.3 247.6 +18.3 +8.0%

(Billions of yen)

Ordinary revenues Ordinary profit insurancebusiness Ordinary profit 17.6 13.7 (3.8) (21.9%)

Non-lifeinsurancebusiness


Ordinary profit 0.7 0.7 (0.0) (8.0%)256 8+8.0%

277.2

Ordinary revenues Ordinary profit

( ) ( )

Bankingbusiness


Ordinary profit 0.8 0.8 (0.0) (0.6%)

Ordinary revenues (0 4) (0 5) (0 0) －

256.8

Intersegment adjustments*

Ordinary revenues (0.4) (0.5) (0.0)

Ordinary profit 0.0 0.0 0.0 +23.1%

C lid t d


O f 19 3 15 4 (3 9) (20 3%)(20.3%) 15.4

Consolidated Ordinary profit 19.3 15.4 (3.9) (20.3%)

Net income 10.8 9.6 (1.2) (11.7%)

(Billions of yen) 12 3 31 12 6 30 Change from FY11 1Q FY12 1Q

19.3

(Billions of yen) 12.3.31 12.6.30 12.3.31

ConsolidatedTotal assets 7,241.4 7,365.0 +123.6 +1.7%

Net assets 347.8 356.8 +9.0 +2.6%

(Billions of yen)

FY11.1Q FY12.1Q

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

4

*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH. *Comprehensive income: FY11.1Q: ¥23.4 billion, FY12.1Q: ¥17.7 billion.

Highlights of Consolidated Operating Performance for the Three Months Ended June 30, 2012 (2)

Life Insurance: Ordinary revenues increased year on year due to higher income from insurance premiums associated with a steady increase in the policy amount in force. Ordinary profit decreased year on year, reflecting an increase in provision for policy reserves related to minimum guarantees for variable life insurance policies. The decrease was also due to recording profit for the previous period resulting from lower insurance claims and other payments related to the Great East Japan Earthquake than estimated in the reserve for outstanding claims as of March 31, 2011.

Non-life Insurance Business：Ordinary revenues increased year on year, owing to an increase in net premiums written primarily for automobile insurance. Ordinary profit slightly decreased year on year owing to an increase in the loss ratio caused by higher net losses paid for automobile insurance.

Banking Business：Ordinary revenues increased year on year due to an increase in net fees and commissions resulting from Sony Bank’s acquisition of SmartLink Network, Inc. in July 2011 as its consolidated subsidiary. Ordinary profit remained at the same levels as during the same period of the

i fi l b hi h i i d l d i i h b l fprevious fiscal year, because higher interest received on loans due to an increase in the balance of mortgage loans offset a decrease in profit related to foreign currency transactions.

Consolidated ordinary revenues increased 8.0% year on year, to ¥277.2 billion, however, consolidated y y yordinary profit decreased 20.3%, to ¥15.4 billion. Net income decreased 11.7%, to ¥9.6 billion.

5


Highlights of Operating Performance:Sony Life (Non-consolidated)

(Billions of yen) FY11.1Q FY12.1Q Change


Income from insurance premiums 194.6 217.9 +23.3 +12.0%


229.3+8.0%

247.6

Investment income 29.0 27.8 (1.1) (4.0%)

Interest income and dividends 23.2 25.7 +2.5 +10.8%

Income from monetary trusts, net 1.3 1.3 (0.0) (0.7%)

Gains on sale of securities 0.5 0.7 +0.2 +52.7%

229.3

Gains on separate accounts, net 3.9 － (3.9) (100.0%)

Ordinary expenses 211.3 233.4 +22.0 +10.4%

Insurance claims and other payments 71.3 69.9 (1.4) (2.1%)

Provision for policy reserves and others 108.1 107.2 (0.9) (0.8%)17 9

(20.8%) 14.1( ) ( )

Investment expenses 3.0 26.1 +23.0 +745.2%

Losses on sale of securities 0.4 0.0 (0.3) (77.5%)

Losses on separate accounts, net － 23.6 +23.6 －

Operating expenses 25 1 26 1 +1 0 +4 3%(Billions of yen)

FY11.1Q FY12.1Q

17.9

(Billions of yen) 12.3.31 12.6.30 Change from 12.3.31

Operating expenses 25.1 26.1 +1.0 +4.3%

Ordinary profit 17.9 14.1 (3.7) (20.8%)

Net income 10.1 8.2 (1.9) (19.4%)

Ordinary revenues increased but ordinary profit decreased year on year.

Income from insurance premiums increased due to a steady increase in the policy amount in force.

Investment income decreased due to worse investment performance on separate account assets under the deteriorated fi i l k t diti Thi ff t th iti i t f hi h Securities 4,545.0 4,657.1 +112.1 +2.5%

Policy reserves 4,843.0 4,950.2 +107.2 +2.2%

Total net assets 264.8 272.2 +7.3 +2.8%

Net unrealized gains on other securities 34.0 42.3 +8.2 +24.3%

financial market conditions. This offset the positive impact of higherinvestment income in the general account assets, driven mainly byan increase in interest income and dividends.

Ordinary profit decreased year on year, reflecting an increase in provision for policy reserves related to minimum guarantees for variable life insurance policies. The decrease was also due to recording profit for the previous period resulting from lower

Total assets 5,222.8 5,330.7 +107.9 +2.1%

Separate account assets 444.2 427.5 (16.7) (3.8%)


recording profit for the previous period resulting from lower insurance claims and other payments related to the Great East Japan Earthquake than estimated in the reserve for outstanding claims as of March 31, 2011.

6

Overview of Performance:Sony Life (Non-consolidated)


New policy amount 1,054.4 1,066.5 +1.1%

Lapse and surrender amount 530 3 497 5 (6 2%)

Increased due mainly to higher sales of living benefit insurance.

(Reasons for changes)

Lapse and surrender amount 530.3 497.5 (6.2%)

Lapse and surrender rate 1.53% 1.38% (0.15pt)

Policy amount in force 35,073.4 36,432.0 +3.9%

Annualized premiums from new policies 17.1 17.4 +1.6%

Decreased due to the lowering lapse and surrender rates mainly in term-life insurance.

Of which, third-sector products 4.2 4.4 +4.5%

Annualized premiums from insurance in force 611.5 643.0 +5.2%

Of which, third-sector products 143.1 151.5 +5.9% Increased due to an increase in interest income

Increased due mainly to higher sales of living benefit insurance.


Gains from investment, net (General account) 21.9 25.3 +15.3%

Core profit 19.2 14.7 (23.0%)

Negative spread 1 3 0 5 (61 5%)

Decreased reflecting an increase in provision for policy reserves related to minimum guarantees for

i bl lif i li i Th d

Increased due to an increase in interest income and dividends.

Negative spread 1.3 0.5 (61.5%)

12.3.31 12.6.30 Change from 12.3.31

Solvency Margin Ratio 1,980.4% 2,081.8% +101.4pt

variable life insurance policies. The decrease was also due to recording profit for the previous period resulting from lower-than-estimated insurance claims and other payments related to the Great East Japan Earthquake in the reserve for outstanding claims as of March 31, 2011. These decreases in profit offset the positive impact of adecreases in profit offset the positive impact of a decline in negative spread. Notes:

*1 Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force, annualized premiums from new policies and annualized premiums from insurance in force are calculated as the total of individual life insurance and individual annuities.

*2 The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, not adjusted for policy amount decreases, increases, and reinstatements, by the policy amount in force at the beginning of the fiscal year.


g g y*3 The above-stated figures of solvency margin ratio are calculated according to the new standards which became

effective as of the end of fiscal 2011 (March 31, 2012).

7

Sony Life Operating Performance (1)

Number and Amount of New Policies(Individual Life Insurance + Individual Annuities)

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)

Annualized premiums from new policies Of which, third-sector

+1.3% 152155 150(T illi f )

New policy amount Number of new policies(Thousands of policies)

(Billions of yen)

15,000

1 051 06 1 06

1501.5

(Trillions of yen)

15

2017.418.1 17.1 +1.6%

10,000 1001.051.06 +1.1% 1.06

1.0

10

15

5,0000.55 +4.5%

0FY10.1Q FY11.1Q FY12.1Q

0 0FY10.1Q FY11.1Q FY12.1Q

4.44.1 4.2

Line item amounts are truncated below ¥10 billion; numbers of policies are truncated below 1,000 policies; percentage change figures are rounded.

Line item amounts are truncated below ¥100 million; percentage figures are rounded.

8


Number and Amount of Policies in Force(Individual Life Insurance + Individual Annuities)

Annualized Premiums from Insurance in Force(Individual Life Insurance + Individual Annuities)

Policy amount in force Number of policies in force Of which, third-sectorAnnualized premiums from insurance in force

(Trillions of yen)(Millions of policies)

(Billions of yen)

5.425.76+6.1%

+1.5%5.67

+5 2% 643.0635 4

36.4

5.42

35.0 +3.9% 36.0

+1.2%

+5.2%611.5

635.4

+1.0%

1 7%

+5.9%

151 1+1.7%143.1 148.9 151.1

Line item amounts are truncated below ¥100 billion; numbers of policies are truncated below 10,000 policies; percentage change figures are rounded.

Line item amounts are truncated below ¥100 million;percentage change figures are rounded.

9


Lapse and Surrender Rate*(Individual Life Insurance + Individual Annuities) Solvency Margin Ratio

10Lapse and surrender rate（Annual）

Lapse and surrender rate（1Q）

2,500

2 081 8+101.4pt

(%)

(%)

8

6.415.93

2,000

2,081.8

1,720.0

1,980.4

4

65.93

1,500

2 (0.15pt)1.58 1.381.53 1,000

0FY10 FY11 FY12.1Q

50011.3.31 12.3.31 12.6.30

0

10

*The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

Note: The above-stated figures of solvency margin ratio are calculated according to the new standards which became effective as of the end of fiscal year 2011 (March 31, 2012).

Percentage change figures are rounded.


Ordinary ProfitIncome from Insurance Premiums

217 9

(Billions of yen)(Billions of yen)

200

217.9+12.0%

182.6194.6

30

100

20

14.1

18.8 17.9

100

10

(20.8%)

0FY10.1Q FY11.1Q FY12.1Q

0FY10.1Q FY11.1Q FY12.1Q


11


Core Profit Negative Spread

320(23 0%)

19.2

(Billions of yen)(Billions of yen)

1514.7

(23.0%)2.6

2

10

11.7

1.3

1

0.5

(61.5%)

5

0FY10.1Q FY11.1Q FY12.1Q

0FY10.1Q FY11.1Q FY12.1Q


12


Number of Lifeplanner Sales Employees p p y(Number)

4 0984,500

4,098(79)4,116

(71)3,996(66)

4,023(62)

4,066(49)

4,026(51)

4 0004,000 (18)

3,500

3,00011.3.31 11.6.30 11.9.30 11.12.31 12.3.31 12.6.30

0

13

* “Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd. Note: Figures in ( ) show the numbers of Lifeplanner sales employees (rehired on

a fixed-term contract basis after retirement) included in the overall numbers.


Breakdown of General Account Assets

<Asset management review>

On the asset side, we lengthened the duration of securities held to match the liability characteristics of insurance policies with long-term maturities with the

aim of reducing interest rate risk.

(Billions of yen)12.3.31 12.6.30

Amount % Amount %

Japanese government and corporate bonds 3,975.7 83.2% 4,113.8 83.9%

Japanese government and corporate bonds: Continue to accumulate ultralong-term bonds in FY12

<L<Lengthened asset duration>

Japanese stocks 45.0 0.9% 37.6 0.8%

Foreign securities 59.6 1.2% 60.4 1.2%g11.3.31 18.5 years12.3.31 19.2 years12.6.30 19.2 years

Foreign stocks 30.5 0.6% 30.1 0.6%

Monetary trusts 288.2 6.0% 292.5 6.0%

Policy loans 138 7 2 9% 138 8 2 8%Policy loans 138.7 2.9% 138.8 2.8%

Real estate 72.9 1.5% 72.4 1.5%

Cash and call loans 64.8 1.4% 46.3 0.9%■Investment in the monetary trusts is mainly into Japanese

government and corporate bonds.

Others 102.6 2.1% 111.0 2.3%

Total 4,778.5 100.0% 4,903.2 100.0%

■The holding ratio on the real status, of Japanese government and corporate bonds including those invested in monetary trusts in the general account assets:

As of June 30, 2012: 89.9%, (As of March 31, 2012: 89.2%)

14


Highlights of Operating Performance:Sony Assurance



+6 3% 21.7Ordinary revenues 20.4 21.7 +1.2 +6.3%

Underwriting income 20.2 21.4 +1.2 +6.3%

Investment income 0 2 0 2 +0 0 +6 4%

+6.3%20.421.7

Investment income 0.2 0.2 +0.0 +6.4%

Ordinary expenses 19.6 21.0 +1.3 +6.8%

Underwriting expenses 15.1 16.1 +1.0 +6.8%(8.0%)0.7 0.7

Investment expenses 0.0 0.0 (0.0) (93.2%)

Operating, general and administrative expenses 4.5 4.8 +0.3 +7.0%

Ordinary profit 0.7 0.7 (0.0) (8.0%)FY11.1Q FY12.1Q

(Billions of yen)

Net income 0.4 0.4 (0.0) (9.4%)


Ordinary revenues increased but ordinary profit decreased year on year.

Ordinary revenues increased owing to an increase in

(Billions of yen)

Underwriting reserves 67.3 69.8 +2.5 +3.7%

Total net assets 18.0 18.4 +0.4 +2.4%

Total assets 118.6 120.0 +1.4 +1.2%

net premiums written atop growth in the number ofinsurance policies in force centered on automobileinsurance.

Ordinary profit decreased owing mainly to an increasein the loss ratio caused by higher net losses paid for

automobile insurance.


15

Overview of Performance: Sony Assurance

(Billions of yen) FY11.1Q FY12.1Q Change (Reasons for changes)

Direct premiums written 20.0 21.2 +6.0%

Net premiums written 20.2 21.4 +6.3%

N t l id 10 2 11 4 +11 6% Increased owing mainly to an increase in the

Increased owing to an increase in the number of policies in force for automobile insurance.

Net losses paid 10.2 11.4 +11.6%

Underwriting profit 0.5 0.4 (13.0%)

Net loss ratio 56.9% 59.9% +3.0pt

Increased owing mainly to an increase in thenumber of policies in force for automobileinsurance, as well as rising unit cost ofinsurance claims and influences of naturaldisasters.

Net expense ratio 24.6% 24.5% (0.1pt)

Combined ratio 81.4% 84.4% +3.0pt

Increased due to an increase in the number of policies in force for automobile insurance

Net expense ratio is equal to the ratio of total underwriting costs to net premiums written.Net loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to net premiums written

12.3.31 12.6.30 Change from 12.3.31

policies in force for automobile insurance.Net loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to net premiums written.

Number of policies in force 1.49 million 1.51 million +0.02 million +1.5%

Solvency margin ratio 557.8% 558.8% +1.0pt

The number of policies in force is the total of automobile insurance and medical and cancer insurance, which accounts for 99% of net premiums written.

Line item amounts are truncated below ¥ 100 million; numbers of policies are truncated below 10,000 policies; percentage change figures are rounded.

16

Sony Assurance’s Underwriting Performance by Type of Policy

FY11.1Q FY12.1Q Change(Milli f )

FY11.1Q FY12.1Q Change(Millions of yen)

Direct Premiums Written Net Premiums Written

(Millions of yen)

Fire 32 63 +97.9%

Marine －－－

P l id t* 1 805 1 931 +6 9%

(Millions of yen)

Fire 61 69 +11.6%

Marine 2 42 －

Personal accident* 1 875 2 001 +6 8%Personal accident* 1,805 1,931 +6.9%

Voluntary automobile 18,184 19,219 +5.7%

Compulsory automobile liability －－－

Personal accident 1,875 2,001 +6.8%


Compulsory automobile liability 150 217 +45.1%

Total 20,022 21,214 +6.0% Total 20,208 21,481 +6.3%

Net losses paid*SURE, medical and cancer insurance is included in personal accident.

FY11.1Q FY12.1Q Change(Millions of yen)

Fire 7 0 (95.3%)

Marine 8 122 －

Personal accident* 426 467 +9.5%


Compulsory automobile liability 197 239 +21.3%automobile liability

Total 10,267 11,461 +11.6% Line item amounts are truncated below ¥ 1 million;Percentage change figures are rounded.

17

Sony Assurance Operating Performance (1)

Net Premiums Written and Number of Policies in Force Ordinary Profit

Voluntary automobile insurance

OtherPersonal accident insurance

(Millions of policies)Number of policies in force

30 1.61 41

1.51+7.0%

(Billi f )

1.5

(Billions of yen)

20

1.2

1.41.41

+6.3%

0 1 0.220.2

21.41.30

18 8

(Billions of yen)

1

0.3

2 020

0 6

0.8

10.1 1.8

18.1

18.81.8

16.8

1

(8.0%) 0.70.7

2.0

19.1

10

0 2

0.4

0.60.5 0.4

Th b f li i i f i h l f bil i d di l

0FY10.1Q FY11.1Q FY12.1Q

0

0.2

0FY10.1Q FY11.1Q FY12.1Q

Line item amounts are truncated below ¥100 million; numbers of policies are truncated below 10,000 policies; percentage change figures are rounded.

The number of policies in force is the total of automobile insurance and medical and cancer insurance policies, which account for 99% of net premiums written. More than 90% of personal accident insurance is medical and cancer insurance.

18


Earned/Incurred Loss Ratio + Net Expense Ratio

Combined Ratio(Net Loss Ratio+ Net Expense Ratio)

Reference

Net expense ratioEarned/Incurred loss ratio Net expense ratioNet loss ratio

100100 93.4+3 5pt

(%)

90 395.2

98.1

89 9

(%)

8080

3.5pt90.3

79.1

89.9

81.485.6

89.0 84.4+3.0pt

+3 0 t

59.960.0 56.955.263.3

40

6068.965.366.469.7 72.4

40

60

+3.6pt +3.0pt

24 524 623 925.5 25.7

20

40

24 6 2423 925.5 25.7

20

40

(0.1pt) (0.1pt)

Net expense ratio is equal to the ratio of total underwriting costs to net premiums written.Earned/Incurred loss ratio is equal to the ratio of the sum of net losses paid, loss adjustment

24.524.623.9

0

FY10 FY11 FY10.1Q FY11.1Q FY12.1Q

24.6 24.523.9

0

FY10 FY11 FY10.1Q FY11.1Q FY12.1Q

p q g pNet loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to net premiums written.

q p , jexpenses and accumulation in provision for reserve for outstanding losses to earned premiums. *Note that earthquake insurance and compulsory automobile liability insurance are excluded from the above calculation.

19


Solvency Margin Ratio

1,200(%)

800+1.0pt

558 8%631 0%

400

558.8%557.8%631.0%

400

011.3.31 12.3.31 12.6.30

20

Note: The above-stated figures of solvency margin ratio are calculated according to the new standards which became effective as of the end of fiscal year 2011(March 31, 2012).

Highlights of Operating Performance:Sony Bank (Consolidated/Non-consolidated)


Consolidated ordinary revenues 7.4 8.3 +0.9 +12.4%

Consolidated ordinary profit 1 0 1 0 (0 0) (0 5%)

<Consolidated>Consolidated ordinary revenuesConsolidated ordinary profit

+12 4%

7.4

8.3


Consolidated ordinary profit 1.0 1.0 (0.0) (0.5%)

Consolidated net income 0.5 1.4 +0.8 +154.1%

<Non-consolidated>

+12.4%

1 0 Ordinary revenues 7.4 7.5 +0.0 +0.9%

Gross operating profit 4.5 4.4 (0.0) (1.7%)

Net interest income 3.8 4.0 +0.1 +5.0%

Net fees and commissions 0 06 0.04 (0 01) (27 9%)

1.0 1.0

(0.5%)

Net fees and commissions 0.06 0.04 (0.01) (27.9%)

Net other operating income 0.5 0.3 (0.2) (43.6%)

General and administrative expenses 3.3 3.5 +0.1 +4.3%

Ordinary profit 1.1 0.8 (0.2) (20.8%)

<Consolidated>Consolidated ordinary revenues increased year on year due to an

increase in net fees and commissions resulting from Sony Bank’sacquisition of SmartLink Network, Inc. as its consolidated

(Billions of yen)FY11.1Q FY12.1Q

Ordinary profit 1.1 0.8 (0.2) (20.8%)

Net income 0.6 (1.2) (1.8) ―

Net operating profit 1.1 0.9 (0.2) (21.3%)

subsidiary. Consolidated ordinary profit remained at the samelevels. Consolidated net income increased due to recordingdeferred tax assets related to accumulated losses of Sony BankSecurities Inc.

<Non-consolidated>Gross operating profit decreased year on year due to a decrease


Total net assets 62.7 61.1 (1.6) (2.6%)

Net unrealized gainson other securities (net of taxes) 1.7 1.8 +0.0 +4.7%

p g p y yin profit related to foreign currency transactions which offsethigher interest received on loans due to an increase in thebalance of mortgage loans.

Net income decreased owing to recording impairment losses on stocks of Sony Bank Securities Inc. resulting in a loss of ¥1.2 billion

Total assets 1, 890.5 1,902.0 +11.5 +0.6%billion.

Net operating profit decreased owing to higher general and administrative expenses led primarily by personal reinforcement for business expansion.

Line item amounts are truncated below ¥100 million except for net fees and commissions; percentage change figures are rounded.

21

Overview of Performance:Sony Bank (Non-consolidated) (1)

(Reasons for changes)11.6.30 12.3.31 12.6.30 Change from 12.3.31

Yen deposit increased d e to the positi e

Foreign currency deposit slightly

Customer assets 1,772.2 1,864.3 1,868.0 +3.7 +0.2%

Deposits 1,664.5 1,762.2 1,767.2 +4.9 +0.3%

Yen deposit increased due to the positive effect of special campaigns associated with the 2012 summer bonus season.

(Billions of yen)

Foreign currency deposit slightly decreased reflecting the yen’s appreciation that had the negative impact on the foreign exchange conversion (negative impact of ¥18.1 billions).

Yen 1,299.4 1,390.5 1,401.8 +11.2 +0.8%

Foreign currency 365.0 371.7 365.4 (6.2) (1.7%)

Investment trusts 107.6 102.0 100.8 (1.2) (1.2%)

Loan balance increased due to an i i th b l f t l*1

Loans outstanding 748.3 835.5 866.4 +30.8 +3.7%

Mortgage loans 676.1 749.6 774.4 +24.8 +3.3%

Others 72.1 85.9 92.0(*1) +6.0 +7.1%

Balance of investment trusts decreased due to the impact of a decline in the Net Asset Value (NAV).

increase in the balance of mortgage loans, in addition to a higher corporate loan balance centered on syndicated loans.

*1 Loans in others include corporate loans of ¥84.9 billion.

1Capital adequacy ratio(domestic criteria) (*2) 10.65% 11.58% 11.29% (0.29pt)

Tier 1 ratio 10.22% 9.63% 9.36% (0.27pt)

*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P25.

.


22

Overview of Performance:Sony Bank (Non-consolidated) (2)

FY11.1Q FY12.1Q Change

<Reference> On Managerial Accounting Basis<Reference> Interest Spread (Managerial Accounting Basis) (Billions of yen)

Gross operating profit 4.5 4.4 (0.0) (1.7%)

Net interest income *1 ① 4.1 4.2 +0.0 2.4%

Net fees and commissions *2 ②

0.3 0.1 (0.1) (35.5%)

Interest spread

Yield on financingYield on investment

1.311.37

1.50(%)

Net other operatingincome *3 0.0 0.0 (0.0) －

Gross operating profit(core profit) (A)

= ①＋②4.4 4.3 (0.0) (0.3%)

0 900.941.00 (0.04pt)

Operating expenses and other expenses ③ 3.3 3.5 +0.1 +5.2%

Net operating profit(core profit)

= (A)－③1.0 0.8 (0.1) (17.2%)

0.90

●Managerial accounting basisThe following adjustments are made to the figures on a financial accounting basis to account for profits and losses more appropriately.

*1: Net interest income: Includes profits and losses associated with fund investment recorded in net other operating income including gains or losses from currency

0.43 0.410.50

recorded in net other operating income, including gains or losses from currency swap transactions.

*2: Net fees and commissions: Includes profits and losses for customer dealings in foreigncurrency transactions recorded in net other operating income.

*3: Net other operating income: After the above adjustments (*1 and *2), consists of profits and losses for bond and derivative dealing transactions.

●Core profitNote: Interest spread=(Yield on investment)-(Yield on financing)

0.00FY11.1Q FY12.1Q

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.The calculation method on a managerial accounting basis was partly changed from FY12.1Q. Accordingly, the figures for FY11.1Q were retroactively calculated.

●Core profitProfits and losses exclude net other operating income, which includes those on bond and derivative dealing transactions, and stands for Sony Bank’s basic profits.

23

Operating Performance:Sony Bank (Non-consolidated) (1)

Deposits Loans

Yen deposits Foreign currency deposits Mortgage loans OthersYen deposits Foreign currency deposits

(Billions of yen)

800

835.5866.4

92.0*

+30.8

Mortgage loans Others

(Billions of yen)*Including corporate loans of ¥84.9 billion.

2,000

365.41,649.1

1,767.21,762.2 +4.9

600

800722.4

*Corporate loans of

¥84.9 billion.

1,500

400

600

1,000

1,401.8200

400774.4

0

500

0

200

Line item amounts are truncated below ¥100 million.

24

0

11.3.31 12.3.31 12.6.300

11.3.31 12.3.31 12.6.30

Operating Performance: Sony Bank (Non-consolidated) (2)

AAA AAABBB Other

Non-Consolidated Capital Adequacy Ratio(Domestic Criteria)Balance of Securities by Credit Ratings

Capital Adequacy Ratio Tier1 RatioBBB Other

(Billions of yen) (%)15

11.58 (0.29 pt)

Capital Adequacy Ratio Tier1 Ratio

1,200

10

11.29

9.36

11.5810.84

10.41

( p )

1,000 917.9940.1 912.9+5.0

(0.27 pt)9.63

10.41

600

800

5

400

* Sony Bank’s non-consolidated capital adequacy ratio was calculated based on the standard

011.3.31 12.3.31 12.6.30

0

200

Amounts are truncated below ¥100 million.

25

Sony Bank s non consolidated capital adequacy ratio was calculated based on the standard stipulated by Article 14-2 of the Banking Act, in accordance with FSA Notification No. 19 (2006).

011.3.31 12.3.31 12.6.30

Consolidated Financial Forecast for the Year Ending March 31, 2013g ,

26

Consolidated Financial Forecast for the Year Ending March 31, 2013■SFH’s forecast of consolidated financial results for FY2012 is unchanged from the forecast announced on May 10, 2012.

FY2011Actual

FY2012Forecast

Change(Billions of yen)

Consolidated ordinary revenues 1,078.0 1,115.0 +3.4％

Life insurance businessNon-life insurance businessBanking business

967.580.032.5

994.586.834.5

+2.8％+8.4％+6.0％

Consolidated ordinary profit 74.6 67.0 (10.2％)

Life insurance businessNon-life insurance businessBanking business

68.12.83.4

61.52.63.6

(9.8％)(9.1％)+3.9％

■Life insurance business

g

Consolidated net income 32.8 37.0 +12.8％

Note: From FY2012, SFH will omit its half-year results forecast, which it previously announced, reflecting the SFH Group’s long-term business structureas a financial institution.

■Life insurance businessOrdinary revenues for FY2012 are expected to increase year on year. In the current fiscal year, we do not expect to record an increase in investment income that we posted at the previous year-end due to the market, although we do anticipate that income from insurance premiums will increase in line with steady growth of the policy amount in force.

Ordinary profit is expected to decrease, since we do not anticipate the profit recorded in the previous fiscal year. In the previous fiscal year, Sony Life recorded a profit due to lower insurance claims and other payments relating to the Great East Japan Earthquake than we had estimated at the end of March 2011, as well as gains on sale of securities, reflecting the process of shifting bond holdings to ultralong-term bonds. However, we do not anticipate such gains for FY2012.

■Non-life insurance businessOrdinary revenues for FY2012 are expected to increase year on year, owing to an increase in net premiums written, primarily for automobile insurance.

Ordinary profit is expected to slightly decrease, mainly because we expect the loss ratio to stay at a high level and the expense ratio to slightly increase resulting from an increase in system-related expenses.

■Banking BusinessOrdinary revenues for FY2012 are expected to rise year on year, owing mainly to a growing balance of loans, especially mortgages.

Ordinary profit is expected to rise, as we anticipate a steady increase in gross operating profit, driven by business expansion.

(Amounts are truncated below ¥100 million; percentage changes are rounded.)

27

Sony Life’s MCEV and

Risk Amount Based on Economic ValueRisk Amount Based on Economic Valueas of June 30, 2012

28

Sony Life’s MCEV and Risk Amount Based on Economic Value as of June 30, 2012

12.3.31(JGB yield)

12.6.30(JGB yield)

Change from 12.3.31

MCEV 1 041 5 1 054 5 12 9

(Billions of yen)

MCEV 1,041.5 1,054.5 +12.9

Adjusted net worth 409.2 432.3 +23.1

632 4 622 2 (10 2)Value of existing business 632.4 622.2 (10.2)

(1) Calculated MCEV for policies in force as of June 30, 2012 by using updated lapse and surrender rate and economic assumptions.(2) Adopted simplified method for a part of MCEV calculations as of June 30, 2012.

(Reason for change) The value of existing business as of June 30, 2012, was down about ¥10.2 billion from March 31, 2012, due mainly to a

decline in ultralong-term interest rates, which offset the positive impact including the addition of new business value. On the other hand, adjusted net worth was up approximately ¥23.1 billion due to an increase in prices of ultralong-term JGBs held from an ALM perspective despite the dividend payout to a shareholder

* Please keep in mind that the validity of these calculations has not been verified by outside specialists.

JGBs held from an ALM perspective despite the dividend payout to a shareholder. Consequently, MCEV as of June 30, 2012, was up from March 31, 2012.

12 3 31 12 6 30 Change from 12 3 31(Billions of yen) 12.3.31 12.6.30 Change from 12.3.31The risk amount based on economic value 551.5 578.8 +27.3

(Billions of yen)

29

Note: Measurement of risk based on economic value takes one-year VaR to be 99.5% and is measured using an internal model that refers to theEU Solvency II (QIS5) standard model.

AppendixAppendix

30

Recent Topics 1

AEGON SONY LIFE INSURANCE Sales UpdateLaunch of sales：December 1, 2009

Common stock ¥20 billion (including capital surplus of ¥10 billion)Common stock：¥20 billion (including capital surplus of ¥10 billion)

Equity ownership：Sony Life insurance Co., Ltd. 50%, AEGON・international B.V. 50%

Marketing products: Individual Variable Annuities (2 types, 4 products)

Sales Channels: Lifeplanner sales employees and partner Banks (7*) As of August 13 2012Sales Channels: Lifeplanner sales employees and partner Banks (7 ) As of August 13, 2012

Financial Highlights for FY12.1Q:

Number of new policies: 1,075, New policy amount: ¥7.4 billion

Number of policies in force: 4,726 policies, Policy amount in force: ¥36.8 billion (As of June 30, 2012)Number of policies in force: 4,726 policies, Policy amount in force: ¥36.8 billion (As of June 30, 2012)

Sony Bank’s Mortgage Loans through Sony LifeSony Life accounts for 25% of the balance of mortgage loans as of June 30, 2012

Sony Life accounts for 27% of the amount of new mortgage loans for FY12.1Q

*Sony Life started handling banking agency business in January 2008Sony Life started handling banking agency business in January 2008.

Sony Assurance’s Auto Insurance Sold by Sony LifeSony Life accounts for approx. 5% of new automobile policies for FY12.1Q

* Sony Life started handling automobile insurance in May 2001.

31“Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

Recent Topics 2

<Highlights for FY12.1Q>

2012-5-16 Sony Life launched the first phase of its “Co-Creation Project”

2012-6-21 Sony Life started managing an official Facebook page

2012-7-23 Sony Assurance launched renewed official website and Smartphone site

2012 7 27 Sony Assurance began providing Smartphone applications designed to assist drivers to be conscious of the importance of2012-7-27 Sony Assurance began providing Smartphone applications designed to assist drivers to be conscious of the importance of

safe driving, to solve problems when troubled and to get estimates and apply for automobile insurance via Smartphone.

Sony Assurance is the first Japanese automobile insurance provider to offer these Smartphone applications and services.

2012-8-01 AEGON Sony Life Insurance began offering a new individual variable annuity product "With Family" through Sony Life's2012-8-01 AEGON Sony Life Insurance began offering a new individual variable annuity product, With Family through Sony Life s

Lifeplanner sales employees

2012-8-01 Sony Bank transferred all Sony Bank securities’ shares to Monex Group with the aim of enhancing financial products

intermediary services through strengthening business alliance with Monex Group.

32

Sony Life: : Fair Value Information on Securities (General Account Assets)

Fair Value Information on Securities Fair value information on securities with market value (except trading purpose securities)Fair value information on securities with market value (except trading-purpose securities)

(Billions of yen)

Valuation gains (losses) on trading-purpose securities(Billions of yen)(Billions of yen)

33

Notes: 1) Line item amounts are truncated below ¥100 million. 2) Amounts above include those categorized as “monetary trusts.”

Sony Life’s Breakdown of Net Assets

Net Assets on BS, Real Net Assets and Solvency Margin

(Billions of yen)

①Net Assets(B/S)

②RealNet Assets

③Solvency Margin

Notes12.3.31 12.6.30 12.3.31 12.6.30 12.3.31 12.6.30

③After estimated

(Billions of yen)

Total shareholders’ equity 232.2 231.3 232.2 231.3 223.1 231.3 ③After estimated distributed income deducted

Net unrealized gains on other securities, net of taxes 34.0 42.3 34.0 42.3 －－

Net unrealized gains (losses) on available-for-sale securities －－－－ 54.6 65.4③Before tax x 90%

Land revaluation, net of taxes (1.3) (1.3) (1.3) (1.3) －－Land revaluation, net of taxes ( 3) ( 3) ( 3) ( 3)

Reserve for price fluctuations －－ 25.3 26.9 25.3 26.9

Contingency reserve －－ 55.3 56.3 55.3 56.3

General reserve for possible loan losses －－－－ 0.0 0.0

②Before tax

Net unrealized gains on real estate －－ 0.6 0.6 (0.1) (0.1)（after revaluation）③Before tax

(Before revaluation) X85%(If losses X100%)

Excess amount of policy reserves based on Zillmer method －－ 350.4 355.7 304.4 315.2 ③After deducting exclusion amount

Unallotted portion of reserve for policyholders' dividends －－ 0.7 0.6 0.7 0.6Unallotted portion of reserve for policyholders dividends 0.7 0.6 0.7 0.6

Deferred tax assets －－－－ 58.7 62.4

Unrealized gains (losses) on held-to-maturity bonds －－ 155.8 176.2 －－②Before tax

Deferred tax liabilities for available-for-sale securities －－ 18.3 22.1 －－

Total 264.8 272.2 871.4 910.8 722.1 758.1

Amounts are truncated below ¥100 million.Note: Real net assets excluding net unrealized gains (losses) on held-to-maturity securities and on policy reserve matching bonds, are

¥715.5 billion as of March 31, 2012, and ¥734.6 billion as of June 30, 2012.

Total 264.8 272.2 871.4 910.8 722.1 758.1

34

Contact: Corporate Communications & Investor Relations Departmentp pSony Financial Holdings Inc.

TEL： +81-3-5785-1074

35

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